Kayne Anderson Energy Infrastructure Stock Price, News & Analysis

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940. The fund’s common stock is listed and traded on the New York Stock Exchange under the ticker symbol KYN. According to the company, its primary investment objective is to provide a high after-tax total return, with a particular emphasis on making cash distributions to its stockholders.

The company states that it intends to achieve this objective by investing at least 80% of its total assets in securities of Energy Infrastructure Companies. In multiple portfolio updates, KYN reports that its long-term investments are largely allocated to Midstream Energy Companies, with additional exposure to Power Infrastructure Companies and other related issuers. These allocations are reflected in periodic unaudited balance sheet information and holdings summaries released by the fund.

Investment focus and portfolio composition

KYN reports that a substantial majority of its long-term investments consist of Midstream Energy Companies, with smaller portions invested in Power Infrastructure and other categories. In recent portfolio disclosures, the fund has indicated that midstream holdings represent the dominant share of long-term investments, while power infrastructure and other investments comprise the remainder. The company notes that portfolio holdings are subject to change without notice and that specific securities mentioned in its reports are not recommendations to buy, sell, or hold any particular security.

The fund also periodically discloses its ten largest holdings by issuer, which have included well-known midstream energy companies and related issuers. These holdings are presented as a percentage of long-term investments and in dollar terms, and may include both equity and debt investments. KYN emphasizes that investors can obtain a complete listing of holdings by reviewing its most recent quarterly or annual report.

Structure as a closed-end fund

Kayne Anderson Energy Infrastructure Fund, Inc. is organized as a closed-end management investment company. As a closed-end fund, it provides regular public reporting of its net asset value (NAV), asset coverage ratios under the Investment Company Act of 1940, and a summary statement of assets and liabilities. The company’s disclosures include information on total assets, leverage (such as credit facilities, notes, and preferred stock), other liabilities, deferred tax items, and net assets.

The fund has reported the use of leverage through a combination of a credit facility, senior unsecured notes, and preferred stock. In its periodic updates, KYN provides asset coverage ratios with respect to senior securities representing indebtedness and total leverage (debt and preferred stock), as required under the 1940 Act. These metrics are presented to show the relationship between the fund’s leverage and its asset base.

Distribution policy and stockholder focus

The company states that its investment objective emphasizes high after-tax total return with a focus on cash distributions to stockholders. KYN has described a practice of declaring and paying distributions on a monthly basis, subject to approval by its Board of Directors and compliance with covenants in its debt agreements and the terms of its preferred stock. The fund also notes that distribution amounts are not guaranteed and may vary based on factors such as changes in portfolio holdings and market conditions.

In its public communications, KYN has highlighted adjustments to its monthly distribution rate, explaining that the Board may modify the rate over time. The company also provides preliminary estimates of the tax character of distributions, while noting that final determinations are made after the end of the relevant fiscal year and may differ from initial estimates.

Leverage and capital structure

KYN periodically discloses details of its leverage, including balances under a credit facility, outstanding notes, and preferred stock. The fund has also reported private placements of senior unsecured notes, with net proceeds used to refinance existing leverage and for general corporate purposes. These notes are described as unregistered securities that may not be offered or sold in the United States without registration or an applicable exemption under the Securities Act of 1933.

The company’s balance sheet summaries show how leverage and other liabilities, such as current and deferred tax items, relate to its total assets and net assets. Asset coverage ratios under the 1940 Act are provided for both indebtedness and total leverage, offering additional context on the fund’s capital structure.

Governance and regulatory status

Kayne Anderson Energy Infrastructure Fund, Inc. is registered under the Investment Company Act of 1940 and files reports with the U.S. Securities and Exchange Commission. Its common stock is registered under Section 12(b) of the Securities Exchange Act of 1934 and trades on the NYSE under the symbol KYN. The company has a Board of Directors that includes independent directors, as defined under the 1940 Act.

In a Form 8-K, the company reported the resignation of an independent director from its Board, noting that the resignation was not the result of any disagreement with the company on matters relating to operations, policies, or practices. Following that resignation, KYN reported that its Board consisted of seven directors, six of whom were independent directors.

Location and sector classification

The company’s SEC filings identify Kayne Anderson Energy Infrastructure Fund, Inc. as a Maryland corporation with its principal offices in Houston, Texas. Based on the provided classification, KYN operates in the Finance and Insurance sector and is associated with the Securities and Commodity Exchanges industry category. Its strategy centers on investing in securities of Energy Infrastructure Companies, with a particular emphasis on midstream energy and power infrastructure-related issuers.

Risk and disclosure considerations

In its press releases, KYN consistently notes that its communications do not constitute an offer to sell or a solicitation to buy any securities and are not intended to recommend any investment policy or strategy or to consider any investor’s specific objectives or circumstances. The company advises prospective investors to consult with investment, tax, or legal advisers before investing.

The fund also cautions that portfolio holdings are subject to change without notice and that distribution levels may be adjusted over time. Estimates regarding the tax character of distributions are described as preliminary and subject to change upon final tax reporting for the fiscal year.

How KYN fits within energy infrastructure investing

According to its disclosures, Kayne Anderson Energy Infrastructure Fund, Inc. focuses on securities of Energy Infrastructure Companies, with a substantial allocation to Midstream Energy Companies and additional exposure to Power Infrastructure and other related categories. By emphasizing high after-tax total return and cash distributions, KYN positions itself as a closed-end fund that concentrates on energy infrastructure-related securities within the broader finance and insurance sector.